taxes due

Forum|Forum|4 years ago
March 9, 2022
1 reply
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Why do I owe so much in taxes?

ColeenD3

Level 15

No one can tell without seeing your return.

Owing taxes unexpectedly can be pretty confusing, but there are a variety of reasons this can happen, including receiving unemployment income or taking on an additional job.

Some of the most common explanations for owing taxes include:

Additional Income

Fewer deductions

Fewer credits

Change in filing status

johntmcdevittAuthor

Level 2

Yes. I'd like to connect with someone to discuss my specific situation.

johntmcdevittAuthor

Level 2

Yes. You are required to report all income received during the year. This would likely be self-employment income, which is reported on a Schedule C.

For tax purposes, self-employment income includes any part-time business or "side work" performed in which you are in business for yourself, rather than another person. You are also considered self-employed and need to file a Schedule C if you engage in business-like activities where you intend to make a profit.

Please follow these steps in TurboTax to start your Schedule C:

Open your return.
Search schedule c with the magnifying glass tool on the top of the page.
Go to the Jump to schedule c link in the search results.
Answer Yes to the page titled, Did you have any self-employment income or expenses?
Follow the on-screen instructions.
On the page titled Let's enter the income for your work, click on Other self-employed income under Common Income.
Enter your type of income (cash/check) and the amount.
Follow the on-screen instructions.

@johntmcdevitt

Would $46,666 in non taxed 1099 income result in a $20,000 taxes owned on the return (as else being equal)? I'm looking for someone to confirm if this seems reasonable.